This thesis is analyzing the development of debt and deficit situation in the Czech Republic and France. Our main research questions are: why the Czech Republic and France have different debt and deficit? What are the effects and causes of debt and deficit? How Czech Republic and France wants to reduce the level of debt and deficit? These are the central questions we try to answer in this thesis. To pursue a systematic analysis, we start with a theoretical section on we described different theories of debt/deficit and budgetary rules effects on the economy in order to understand characteristics of debt issues. From these findings, we have resulted causes and differences of debt situations in our countries, which is part of empirical analysis. This is done by evolution of debt/deficit and factors that affect level of debt/deficit. We analyzed three mains factors and due to this factors that influence debt/deficit we can clearly see why our countries have different levels in debt problem. Regarding this we can say our countries are different in many respects. The major difference is monetary policy due to French member of Eurozone. Also the way how to get from debt issue and find a compromise between government reforms and interests of citizens will vary in the future.